Real USD Basics
What is Real USD?
Real USD is a new type of money backed by Real Estate, that yields 8-15% per year.
Is Real USD crypto?
Yes, Real USD is a stablecoin, which is a type of crypto. But it’s different from other crypto currencies out there. Stablecoins are pegged to the dollar meaning each Real USD is worth $1.00. It doesn't go up and down in price like Bitcoin or other smaller tokens.
Real USD is backed by real world assets, the real estate in the treasury. New Real USD can only be created when money flows in and is converted into real estate. This makes Real USD a safe store of value.
Where does the Real USD yield come from?
Real USD yield comes from the rental income of tokenized real estate. Each month rent is collected from tenants. That money is converted to DAI and placed into a smart contract which distributes the income to USDR holders through a daily rebase.
What is a rebase?
A rebase simply means that the number of Real USD in holders wallets increases proportional to how much they are holding and by the rent that entered the treasury.
For example if there are 2 holders with the following balances:
Holder 1 - 100 Real USD (66.66% of the Real USD in circulation)
Holder 2 : 50 Real USD (33.33% of the Real USD in circulation)
Then Rent of $10 enters the treasury and a rebase occurs, these would be the new balances of those holders:
Holder 1 - 106.66 Real USD
Holder 2 : 53.33 Real USD
What is wUSDR?
wUSDR is a wrapped version of USDR that can be more easily used in liquidity pools and moved cross-chain from Polygon. USDR can be wrapped in the Real USD mint box on our site.
When rent is collected and distributed to Real USD holders, the way this yield hits the tokens varies slightly: - USDR is a rebasing token. When you hold it the amount of tokens you own goes up. - wUSDR, the value accrues to the token. Instead of more tokens at each rebase, it gets more valuable. USDR has something called a liquidity index to keep track of it. wUSDR relies on that. Before the very first rebase 1 wUSDR could be unwrapped for 1 USDR. After a 1% rebase, the USDR amount wrapped in wUSDR increased by 1%. Now, when you unwrap, you get 1.01 USDR.
The two tokens are connected, we only need to make sure the value of wUSDR is increasing correctly to the value of USDR so that when wUSDR is unwrapped it yields the correct USDR for the user. They accrue the same ammount of value.
The wUSDR contracts were developed in coordination with Multichain, who manage wUSDR cross-chain. Only they can mint and burn the wUSDR token. If you bridge from chain A to chain B, Multichain will burn the tokens on chain A and then mint on chain B.
Because of Multichain's involvement, their bridge must be used to bridge wUSDR to other chains. Multichain stats: - $100B in volume - Nearly $2B in TVL - Support nearly 3500 tokens on 88 chains
Who is eligible for the 10% TNGBL yield?
Users who hold the native, unwrapped Real USD in their wallet will earn the 10% TNGBL yield, airdropped daily to their wallet. No need to stake, no claim, no action required. Simply collect the 10% APR in TNGBL.
Users who LP their TNGBL on protocols like Curve, Chronos, Velodrome, Beefy, etc. will not receive the 10% in TNGBL as that incentive is used to bribe the ve(3,3) voters which helps return the high APRs found in the pools on those sites. Their 10% incentive is leveraged for other rewards.
Is Real USD an algorithmic stablecoin?
No Real USD is a fully collateralized stablecoin, not an algorithmic one. For every dollar of market cap, there are assets equal to or greater than that amount of money in the treasury.
How does Real USD maintain its peg?
Real USD is a fully collateralized stablecoin, each dollar of Real USD minted is backed by $1 or more worth of assets. At anytime users can burn their Real USD and claim the assets that back Real USD. This mechanism helps Real USD maintain its $1 peg.
Because if Real USD trades beneath $1 on an exchange it becomes profitable for an arbitrageur to buy Real USD on the exchange and burn/redeem it for $1 of DAI from the treasury.
What is the Real USD supply based on?
The Real USD supply is primarily based on minting and redemptions. For every $1 of DAI or TNGBL that goes in, the supply increases by 1 token. For every $1 redeemed, the supply reduces by 1 token.
Another source of supply is rental income. The money that comes into the treasury each month as rent from tenants is converted to DAI and then used to mint Real USD. This new supply is distributed to holders through the daily rebase.
Lastly, Real USD launched with an update that allows the treasury to automatically mint new USDR for every 1% gain in treasury value above 100% collateralization. The USDR supply will expand by that total and will be immediately spent on new real estate that now backs the expanded supply.
What is the relationship between Tangible and Real USD? How do both products build on one another?
Real USD sits under Tangible as one of our primary products, alongside our marketplace of tokenized real world assets.
Real USD allowed us to build strength on strength. With the systems and organizational knowledge in place to purchase, tokenize and manage real estate, it was a simple leap forward to apply that infrastructure to the design of a fully collateralized stablecoin. USDR allows us to bring many of the benefits of owning real estate to a global user base (yield, wealth preservation) without the many barriers and hassles to owning an entire physical property.
We view Real USD as a key to our real world asset ecosystem going forward, serving as a borrowing currency for users looking for leverage on existing RWAs and operating as the primary currency in our marketplace.
There are many stablecoins available on the market. What features does Real USD possess that make it stand out from the rest?
- 1.Real USD is fully-collateralized/over-collateralized and designed to become more collateralized over time as the real estate assets in the treasury appreciate.
- 2.It’s the only stablecoin backed by real estate. It’s really the only money that’s backed by real estate.
- 3.Real estate is a proven store of wealth unlike the fiat backing other stablecoins. Unlike stablecoins backed by crypto, real estate is a human primitive with timeless demand and substantially less volatility than digital assets.
- 4.USDR has a native source of real yield, distributed via daily rebase, built directly into the token itself. Rental income is extremely reliable/consistent and uncorrelated from the performance of crypto markets.
What happens if Tangible the company goes bankrupt?
The Real Estate and USD that backs Real USD belong to the Real USD holders not to Tangible, Tangible simply manages the properties and collects the rent. In the unfortunate case that Tangible becomes insolvent or discontinues business due to some unforeseen reason, the Real Estate would simply be sold and then the USDC from the proceeds of the sales placed into the treasury so that Real USD could swap their Real USD into USDC and then back to their local currency if they wish.